Genesis Now Halts Digital Asset Derivatives Trading Through GGC International
- Genesis will halt trading of digital asset derivatives through GGC International starting on September 21.
- The company introduced a compensation plan aimed at addressing the concerns of retail creditors.
- DCG is urging creditors to back a proposed repayment plan that could fully reimburse customers who invested through Gemini Earn.
Genesis, a prominent digital asset financial company, has informed its clients via email that it will cease trading digital asset derivatives through GGC International, The Block reported.
This decision is scheduled to come into effect at 5:00 p.m. Eastern Time on September 21st, marking the end of trading services provided by Genesis across all its business entities. The company cited voluntary and business-driven reasons for this move.
Notably, Genesis, along with its parent company, the Digital Currency Group (DCG), has proposed a compensation plan aimed at addressing the concerns of more than 230,000 retail creditors.
The company had been a financial supporter of the Earn program, accessible to customers of the Gemini crypto exchange. However, complications arose when Genesis had to halt withdrawals and seek bankruptcy protection.
In a recent development, the DCG has urged creditors of its bankrupt crypto lending subsidiary, Genesis Global Holdco LLC, to support a proposed repayment plan. According to DCG, this plan has the potential to fully reimburse hundreds of thousands of customers who had invested through Gemini Trust Co.’s Earn program.
Under Genesis’ restructuring proposal, Gemini Earn users could receive 100 cents on the dollar, or possibly even higher returns, with partial repayments in Bitcoin and Ether. Other unsecured creditors of the company could also recover a significant portion, ranging from 70% to 90%, significantly surpassing what customers of other bankrupt crypto platforms are expected to receive through court-approved liquidation plans, as per DCG’s statement.
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